MediaAlpha, Inc. Fundamental Analysis (NYSE: MAX)
MediaAlpha, Inc. Fundamental Analysis (NYSE: MAX)
MediaAlpha, Inc. (NYSE: MAX) shows moderate financial fundamentals with a PE ratio of 7.39, profit margin of 8.35%, and ROE of 5.04%. The company generates $1.2B in annual revenue with strong year-over-year growth of 28.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MAX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMAX demonstrates superior asset utilization.
Valuation Score
ExcellentMAX trades at attractive valuation levels.
Growth Score
ExcellentMAX delivers strong and consistent growth momentum.
Financial Health Score
ModerateMAX shows balanced financial health with some risks.
Profitability Score
WeakMAX struggles to sustain strong margins.
Key Financial Metrics
Is MAX Expensive or Cheap?
P/E Ratio
MAX trades at 7.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MAX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values MediaAlpha, Inc. at 15.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.40 times EBITDA. This signals the market has high growth expectations.
How Well Does MAX Make Money?
Net Profit Margin
For every $100 in sales, MediaAlpha, Inc. keeps $8.35 as profit after all expenses.
Operating Margin
Core operations generate 11.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.04 in profit for every $100 of shareholder equity.
ROA
MediaAlpha, Inc. generates $29.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MediaAlpha, Inc. generates limited operating cash flow of $52.92M, signaling weaker underlying cash strength.
Free Cash Flow
MediaAlpha, Inc. produces free cash flow of $51.98M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.02 in free cash annually.
FCF Yield
MAX converts 7.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
5.04
vs 25 benchmark
ROA
Return on assets percentage
0.29
vs 25 benchmark
ROCE
Return on capital employed
0.66
vs 25 benchmark
How MAX Stacks Against Its Sector Peers
| Metric | MAX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.39 | 18.71 | Better (Cheaper) |
| ROE | 503.71% | 905.00% | Weak |
| Net Margin | 8.35% | 1010.00% | Weak |
| Debt/Equity | 3.41 | -0.06 (disorted) | Distorted |
| Current Ratio | 1.32 | 1.82 | Neutral |
| ROA | 29.03% | 295.00% | Weak |
MAX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MediaAlpha, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
8.79%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
-1.09%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-27.10%
Industry Style: Growth, Technology, Streaming
Declining